In the spirit of ESPN's Monday Night Countdown, a word to Federal Reserve Chairman, Jay Powell ... "C'Mon Man!"
While the markets have rebounded nicely on Thursday, it seems to me that Federal Reserve chair Jay Powell unnecessarily complicated the outlook for interest rate policy on Wednesday by saying the Fed will decide, meeting by meeting, what to do next.
Meanwhile, long-term interest rates, after having fallen for weeks in anticipation of a half-point cut, which the Fed delivered, have actually moved up a bit.
I'm not entirely certain but I suspect it's the lack of clear direction on future rate policy that is the culprit.
In those days, the Fed was loathe to discuss its actions publicly and only signaled to markets what it had done with respect to interest rate policy a considerable time after the action was undertaken.
Persons:
Jay Powell, Powell, Paul Volcker
Organizations:
Federal, Fed
Locations:
China